182 Timehri. 



harbour having a trunk-line terminus. We can postpone consideration 

 of this. Harbour improvement will not be urgent without a through 

 route. Three years hence is time enough.* 



(3.) Sea Defences we should deal with either by a loan on some 

 separate basis or out of our developing resources. Some contribution 

 (say £50,000) might be made froin the Development loan. 



(4>.) Deficit on Working Expenses, i.e., over and above capital 

 charges. Mr. Bland's figures are a deficit of £10,000 after the first five 

 years. I thitk he has under-estimated returns if the route is to be a 

 through route. If there is a deficit it can be provided for out of current 

 revenue but I do not think there will be one.f 



The Scheme is based on fifty years amortization and repayment as 

 required by the Colonial Loans Act, 1899.* 



(1) Re RAILWAY LOAN {l\ MILLIONS STG.). 

 Wc ask the Secretary of State to carry us entirely for the first six 

 years, as to half for the ensuing six years, finding the deferred interest as 

 it becomes due and makiDg no provision for Sinking Fund for twelve 

 years. After twelve years we pay the whole interest plus interest on the 

 funded deferred interest, plus Sinking Fund on the total amount spread 

 over 38 years. Labour for the Kailway should be looked for to West 

 Indian and local negroes, the most suitable for that class of work. No 

 restriction should be attempted in the movement of labour. 



(2) Re DEVELOPMENT LOAN (f MILLION STO.). 



We ask the Secretary of State to carry us for three years and we 

 then undertake to repay loan and deferred interest in 47 years. This 

 might be altered to four or even five but three should do. 



This is only Four thousand families or possible families, i.e., groups of two con- 



a suggestion s j 8 ting of not less than one adult person of each sex (East Indians or 



fast* Bdleme. Chinese) married or of marriageable age indentured for three years on 



Bo * h e "" ™ b of *' ie coas t properties, should be brought in at Government expense. At 



indenture may £30 per " family " this would cost £120,000 a year for five years. 



b» varied. 



'NOTE. — In the four years that have passed since the above was written the Bar has not 

 improved and in default of any larjrer scheme, which the expense might not justify in the 

 present conditions of our shipping trade, immediate dredging operations are indispensable 

 and will be found adequate for the next five years. 



t Nom-Mr. Prest has called my attention to the fact that Mr. Bland's estimate 

 overlooks the first five years. (The deficit on the first five years should be charged to 

 capital required for the railway. 



* By this Act interest must be at such a rate as will save the Fluid from actual loss 

 and must not be less than 2J%. The price of our money must be fixed by English market 

 conditions. Consols now stand at 7."> to 7i> and many Colonial Loans are being issued 

 at 99 for 4%. The interest mentioned is a rou^h approximation based upon what our 

 money would cost us. The loan must be satisfactorily secured by the local legislature. 



